Your Asset Allocation Should Not Be Influenced by

question 59

Multiple Choice

Your asset allocation should not be influenced by

• A) your risk tolerance.
• B) economic conditions.
• C) religion.
• D) your age.

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Definitions:

Classical Conditioning

A learning process that pairs a neutral stimulus with a stimulus that elicits a reflexive response until the neutral stimulus alone elicits that response.

Observational Learning

A form of social learning where behaviors are learned by watching and imitating the actions of others.

Conditioned Taste-Aversion

Learning to avoid a food or drink because it has been associated with an illness or negative experience, even after only one exposure.

Stimulus Substitution

A theory in classical conditioning suggesting that the conditioned stimulus acts as a substitute for the unconditioned stimulus, eliciting the same response.